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Are you ready for the IRS to come knocking at your door, or at least send you a letter?
On August 16, 2022, President Biden signed the Inflation Reduction Act, commonly referred to as the “IRA”, into law. In addition to a bunch of other things, it authorized the funding of $80 BILLION for the IRS over the next ten years. Over half of the $80 billion, or approximately $45 billion is earmarked for enforcement. So, what does that mean...
Must you report income even if you do not receive a Form 1099?
Mr. and Mrs. LaRochelle learned the hard way that even though you do not receive a Form 1099, you must still report the income or it will cost you more than just the tax. The facts of this case are that the LaRochelle’s just moved their primary residence to Florida but also kept their home in Washington, D.C. Mr. LaRochelle had a very busy...
Is mortgage interest deductible?
Most of us think that mortgage interest on our homes are fully deductible. Well, not so fast. Mortgage interest used to be fully deductible, then it went to only being deductible to $1,000,000 and $ 100,000 of a loan for renovation and now if you buy a home, it is limited to only $750,000 of mortgage on which the interest can be deducted. As we...
Does it matter where you file your tax return?
Can you file a tax return with any Internal Revenue Service employee? Hmmm. Well, the answer to that question is yes…no… and maybe. Are you confused yet? In WH Hill Co v Commissioner, the Court held that in order to start the Statute clock, the tax return MUST be filed with the correct Service Center on the correct form. Providing a copy to an...